EUR/USD, GBP/USD, and USD/JPY start to reverse recent fortunes
Dollar strength could help drive EUR/USD, and USD/JPY, while GBP/USD hopes to reverse its recent fortunes after a decline into key support.
EUR/USD rolling over from Fibonacci resistance
EUR/USD has enjoyed a period of strength over the course of the past week, with the pair rising back into the 76.4% Fibonacci resistance level.
That brings us into an area where the pair could reverse lower to continue the downtrend seen throughout 2021 thus far. With that in mind, a bearish outlook is in play here, with a rise up through $1.199 required to bring about a more positive view. To the downside, a break below $1.1861 would add greater confidence to this bearish outlook.
GBP/USD back into key $1.367 support
GBP/USD has been hit hard of late, with the pair falling back into the prior swing low of $1.367. That level was also respected on Friday, with an initial rebound ultimately fading to take us back into key support once again this morning.
Keep a close eye on the $1.3744 resistance level here, with a break through that swing high bringing about a more positive outlook. However, while we could see a positive break through that level, there is also a risk that the bears come back into prominence with a break below the $1.367 level.
USD/JPY turning lower, yet bulls could be back before long
USD/JPY is starting the week on the back foot, with the pair turning lower from the ¥109.94 swing high.
We are seeing the pair weaken from that level, but the recent 76.4% retracement does highlight the fact that this market still does remain within a bullish trend on the daily chart. As such, this current move lower could bring a buying opportunity, with a decline through ¥108.41 required to negate the current wider uptrend.
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